Travel Insurance Prices Unaffected by Middle East Crisis
Travel insurance prices show no Middle East crisis spike, according to a new analysis of the UK market. While premiums have edged upward during 2026, there was no sudden pricing response in March following the escalation of the crisis in the Middle East. Median top-five prices by cover level remained broadly stable between February and March, suggesting the market did not immediately reprice travel cover in response to the geopolitical situation.
Defaqto’s month-by-month pricing analysis shows that travel insurance remains reasonably priced for consumers. For annual multi-trip cover rated 5 Star or above, the median top-five price moved from £99 in January to £103 in February and £104 in March, before remaining at £104 in April and falling back to £99 in May. For single-trip cover rated 5 Star or above, the equivalent price was £44 in January and February, £46 in March, £45 in April and £43 in May.
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Lower and mid-level cover also showed no evidence of a sharp spike in March or April. Annual multi-trip cover rated 3 Star or above was £70 in January, £76 in February, £76 in March and April, and £73 in May. Single-trip cover rated 3 Star or above moved from £30 in January and February to £31 in March and April, before easing to £29 in May.
The findings suggest that consumers who are placing greater emphasis on quality and cover levels are not facing a sudden price shock linked to recent geopolitical events. Defaqto’s analysis also indicates that choosing higher-rated cover does not necessarily mean a significant increase in cost. The median top-five price for 5 Star annual multi-trip cover was £99 in May, compared with £73 for products rated 3 Star or above. For single-trip cover, the equivalent figures were £43 for 5 Star products and £29 for products rated 3 Star or above.
That means the gap between 3 Star-or-above cover and 5 Star cover in May was £26 for annual multi-trip policies and £14 for single-trip policies. This supports the view that, from a consumer perspective, travel insurance remains a relatively affordable purchase even where holidaymakers choose higher-quality cover.
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Frances Luery at Defaqto, said: “The recent focus on geopolitical risk is a timely reminder that travel insurance is there to protect people when plans change, when medical treatment is needed abroad, or when disruption creates unexpected costs. What is striking in our data is that the market has not seen a sudden price reaction to the crisis in the Middle East. Prices have been edging upward during 2026, but there was no sharp movement in March. In fact, the month-by-month figures suggest a relatively stable pricing environment for consumers.”
Quality cover is also widely available. Nearly half of the products we analysed carry a 5 Star Rating, and the price difference between 3 Star-or-above cover and 5 Star cover is not as large as many consumers might assume. That matters because in travel insurance, the cheapest policy may not be the best answer. Consumers should consider whether the cover fits their trip, their destination, their health, the value of their holiday and the risks they are most concerned about. Price is important, but it should not be the only factor.
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Defaqto said the findings are particularly relevant as holidaymakers review their insurance needs against a more uncertain international backdrop. While recent diplomatic developments between the US and Iran may have reduced some immediate fears around the Middle East crisis, travellers still need to consider the practical implications of disruption, medical emergencies, cancellation, curtailment, baggage, delays and exclusions.
Defaqto said the data shows that quality and affordability do not have to be competing priorities. With no evidence of a sudden March price spike, and with many higher-rated products available at only a modest premium, consumers should be encouraged to choose travel insurance based on the cover they need rather than price alone.
